Gold and Silver push resistance, look for failure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver are pushing up against resistance, gold at $1,830 and silver at $22. The highest probability is a failure from these levels. In other words, this looks like a selling opportunity. There is no guarantee; however, the probability is the metals will go back and test the recent lows.
You must remember that trading is about probability based on the price action of the time frame you are trading. On any day, anything can happen. It is our objective to trade with the odds in our favor. News is worthless noise and has no bearing on any trade.
Everything and every trade are about the price action, the pattern, and the trend. The discipline to reverse, take a loss and move on are critical. Excuse making, like they are manipulated are anything else are garbage. Price is price; however, it gets there.
Price discovery always plays in all markets; nothing is a surprise. Gold and silver are in solid downtrends. The news we are seeing today has already been priced into the market. Until something changes, precious metals are a short-term sell.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper, knowing that we can trade either side without emotions.
In all markets, price action determines what will happen in the next day, week, or month. Keep the two strategies separate. The worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
Join me Monday at 4:30 EST for our Monday Night Strategy Call. The link to register is below.